One figure against two, again
| Source | Oil furnace, installed |
|---|---|
| Fixr, January 2026 | $4,000 to $10,000, average $4,900 |
| This Old House, April 2026 | $6,750 to $10,000 |
| Bob Vila, January 2024 | $6,750 to $10,000 |
The two that agree do so to the dollar, at both ends. And Fixr's average of $4,900 is $1,850 below the floor the other two share, our subtraction, which means on their figures the average job Fixr describes could not happen at all.
Why we do not count that agreement twice
This Old House sources its furnace cost data to HomeAdvisor, in a note on the page. Bob Vila attributes its figures to Angi. Our electric furnace page sets out in full why that makes an identical pair of figures one measurement rather than two, and the same reasoning applies here.
So this page has two measurements, not three. We use Fixr's as the planning number and treat $6,750 to $10,000 as the band a lot of real invoices land in, which is what a marketplace dataset records.
Fixr also brackets its own range more widely than either: as little as $1,900 for a new oil furnace or as much as $12,000.
What the headlines all leave out
The tank. Fixr: if the oil tank has to be replaced because of leaks, age or corrosion, add $1,000 to $4,600.
The old furnace. Disconnecting and hauling away the old unit adds $50 to $400, and Fixr notes some contractors include it and some do not.
Our arithmetic, marked as ours. Fixr's $4,900 average plus a tank at the middle of its band, about $2,800, plus removal at $225, comes to roughly $7,925. That is inside the $6,750 to $10,000 the other two publishers quote. The three sources may be describing the same job with and without the tank, and none of them says which.
That is the single most useful thing on this page, and it is the first question to ask a contractor.
The labour share is the highest in this section
Fixr: labour accounts for between 30% and 60% of the total, and installation takes between 4 and 12 hours.
Our comparison, marked as ours. On our gas furnace page we worked out that the equipment is roughly 28% of the bill, so labour and the rest take the remainder. Here the publisher states the labour share directly, and at up to 60% it is the largest share of any fuel we have priced. The spread between four hours and twelve is the reason: an oil furnace swap in an accessible basement and one that involves the flue, the tank and the lines are not the same day's work.
By efficiency and by size
| Efficiency | Typical cost |
|---|---|
| Standard, 80 to 87% AFUE | $3,500 to $7,500 |
| High, 90% AFUE or higher | $6,000 to $10,000 |
| Home size | Average BTUs needed | Installation cost |
|---|---|---|
| 1,000 sq ft | 30,000 to 60,000 | $3,500 to $6,000 |
| 1,500 sq ft | 45,000 to 90,000 | $4,000 to $7,000 |
| 2,000 sq ft | 60,000 to 120,000 | $4,500 to $8,000 |
| 2,500 sq ft | 75,000 to 150,000 | $5,500 to $9,000 |
| 3,000 sq ft | 90,000 to 180,000 | $6,500 to $12,000 and above |
Our arithmetic. The BTU column is the identical bracket Fixr prints on its propane page, which our propane furnace page works through: one publisher, two fuels, one sizing rule that allows a factor of two for the same house.
Note also that the high-efficiency band starts at $6,000, above Fixr's own stated average of $4,900. Our reading: the $4,900 average describes a standard-efficiency replacement. If you are being quoted a 90% AFUE unit, the relevant number is the $6,000 to $10,000 row, which is where the other two publishers' range sits.
Where oil sits among the fuels
Bob Vila's table:
| Fuel | Installed range |
|---|---|
| Electric | $2,000 to $7,000 |
| Propane | $3,700 to $14,200 |
| Natural gas | $3,800 to $10,000 |
| Oil | $6,750 to $10,000 |
Oil has the highest floor of any fuel on that table, which is why This Old House calls it the most expensive. Propane has the higher ceiling, which our propane furnace page explains is about the tank and the lines rather than the furnace.
Our gas furnace page and electric furnace page price the other two, our furnace page has the overall comparison, and our heat pump vs furnace page prices the machine that replaces the fuel question entirely.
Before you get quotes
- Ask whether the oil tank is included and whether it needs replacing. At $1,000 to $4,600 it may be the difference between the published ranges.
- Ask whether removal of the old furnace is in the price. $50 to $400, and Fixr says contractors differ.
- Ask for the AFUE rating. The high band starts above the national average, so the two figures answer different questions.
- Ask how many hours the job is quoted at. Four against twelve, at a labour share of up to 60%, is most of the variation.
- Ask for the heat-loss calculation rather than the square-footage bracket, which allows a factor of two.
Sources
- Fixr, How Much Does Oil Furnace Installation Cost?, updated January 12, 2026 (the $4,000 to $10,000 range and $4,900 average, the $1,900 low and $12,000 high, the tables by efficiency and house size, the labour share and installation hours, old furnace removal and oil tank replacement)
- This Old House, How Much Does a Furnace Cost?, updated April 3, 2026 (oil furnaces at $6,750 to $10,000 as the most expensive fuel, and the note that its cost data is based on estimates from HomeAdvisor)
- Bob Vila, How Much Does Furnace Replacement Cost?, updated January 31, 2024 (oil furnaces at $6,750 to $10,000, the full fuel comparison table, and the Angi attribution)
Price figures are national US ranges from the sources above as of the date shown. Your local price depends on labor rates, permits and site conditions. Read how we get our numbers.